Three Wall Street Firms Cut Tesla's Price Target

Wall Street’s outlook on Tesla is turning more cautious as the global automotive industry faces fresh uncertainty stemming from mounting trade tensions. Several major banks have slashed their price targets for the electric vehicle (EV) giant, signaling growing concern over the company’s near-term performance and broader market dynamics.

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On Thursday, analysts from Goldman Sachs, UBS, and Mizuho all trimmed their forecasts for Tesla’s stock price. UBS made the most dramatic revision, lowering its price target from $225 to $190, which suggests a potential 30% decline from current levels. Goldman Sachs reduced its target more modestly, cutting it from $275 to $260, implying a 4% drop from Wednesday’s close. Meanwhile, Mizuho trimmed its estimate from $430 to $375 but still sees notable upside — about 38% — based on current pricing.

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The analysts cited a combination of softer demand, cost pressures from rising tariffs, and increasing competition in global EV markets as key risks. UBS analyst Joseph Spak, who maintains a “sell” rating on Tesla, warned that investor expectations for the company’s 2025 earnings are likely too high. He said that following Tesla’s first-quarter 2025 earnings report, estimates may face further downward revisions. Spak also flagged Tesla Energy — the company’s solar and energy storage division — as being particularly vulnerable to tariffs imposed by China.

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Tesla’s stock performance has already taken a hit in 2025, with shares down around 33% year-to-date. That slide has erased the bulk of Tesla’s gains following the 2024 U.S. presidential election, when the stock rallied on hopes of business-friendly policies. But as trade disputes resurface — particularly with China — and broader economic growth shows signs of slowing, investor sentiment has shifted.

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Concerns have also mounted over CEO Elon Musk’s increasing involvement with the Trump administration, which some believe may become a distraction or bring unwanted political risk to the company. At a time when regulatory clarity around electric vehicles is crucial, Musk’s polarizing presence has sparked debates among shareholders and analysts alike.

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Goldman Sachs analyst Mark Delaney echoed some of these concerns in a note, pointing to the intersection of weaker consumer sentiment, increased costs from tariffs, and uncertainty surrounding U.S. EV policy. However, he also acknowledged Tesla’s long-term prospects, particularly in artificial intelligence (AI), could help cushion the blow over time. Goldman kept its “neutral” rating in place, suggesting the firm sees a balance between near-term risks and long-term potential.

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Among the three banks, Mizuho remains the most bullish. Analyst Vijay Rakesh reiterated his “outperform” rating, signaling confidence in Tesla’s continued leadership within the U.S. electric vehicle sector. Still, he acknowledged the headwinds facing the company overseas, especially in Europe and China, where competition is intensifying. Chinese EV makers like BYD and European automakers are rapidly scaling production, putting pressure on Tesla’s global market share.

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Despite Mizuho’s relatively positive stance, the firm still lowered its price target by $55, reflecting some moderation in expectations. Rakesh emphasized that while Tesla maintains a strong position domestically, it will need to navigate growing international challenges as the EV market matures.

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Following the wave of price target cuts, Tesla shares fell more than 3% in Thursday’s premarket session. The sell-off highlights how sensitive the stock is to analyst sentiment, especially amid broader market volatility.

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The recent analyst moves reflect a broader shift in how Wall Street views Tesla’s trajectory. The company, once seen as an unstoppable growth machine, is now facing a more complex reality. While Tesla remains a dominant player in EV innovation, its path forward is increasingly clouded by macroeconomic pressures, political factors, and heightened competition.

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Still, the long-term story is far from over. Tesla’s investments in AI, autonomous driving, and energy storage continue to offer potential growth avenues — though realizing that potential may take time. In the meantime, analysts appear to be recalibrating their expectations, aiming to balance Tesla’s innovation-led promise with the more immediate challenges facing the company in today’s unpredictable global landscape.

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